Current Mortgage Rates -- July 28, 2021: Rates Up for All Loans

Here's how rates are trending as July draws to a close.

If you are thinking about buying a new house, average mortgage rates are likely worth keeping tabs on. While your personal financial situation determines your rate, national averages also impact what you're likely to pay for a home loan.

Here are today's average mortgage rates for July 28, 2021 so you can get an idea of what a loan might cost you:

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage rates

The average 30-year mortgage rate today is 3.056%, up 0.011% from yesterday's average of 3.045%. A loan at today's average rate would come with a monthly principal and interest payment of $425 per $100,000 borrowed. You'd be looking at total interest costs of $52,867 per $100,000 in mortgage debt over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.795%, up 0.03% from yesterday's average of 2.765%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $544 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $30,654 per $100,000 borrowed.

Your interest costs over time are lower with this loan than the 30-year loan. But each monthly payment is higher. Both of these factors occur because you're shortening your loan payoff time. You'll have to decide if you're OK with higher monthly payments in exchange for lower total interest costs.

15-year mortgage rates

The average 15-year mortgage rate today is 2.336%, up 0.003% from yesterday's average of 2.333%. A mortgage loan at today's average interest rate would cost you $659 per $100,000 borrowed. Over the life of the loan, total interest costs would be $18,637 per $100,000 in mortgage debt.

This loan has much higher monthly payments than the 30-year or 20-year loan, but you save a lot of money on interest and become debt free much faster. See if the payments are affordable and if you'd rather pay more each month in order to make fewer payments over time.

5/1 ARMs

The average 5/1 ARM rate is 2.886%, up 0.094% from yesterday's average of 2.792%. You will not be guaranteed this rate for the life of the loan. Because this is an adjustable-rate mortgage, your rate will begin adjusting after five years. Since it could go up, your monthly payments and total costs could both get more expensive. Think about whether the risk is worth it or you'd prefer the certainty of a fixed-rate loan.

Should I lock my mortgage rate now?

A mortgage rate lock guarantees you a certain interest rate for a specified period of time -- usually 30 days, but you may be able to secure your rate for up to 60 days. You'll generally pay a fee to lock in your mortgage rate, but that way, you're protected in case rates climb between now and when you actually close on your mortgage.

If you plan to close on your home within the next 30 days, then it pays to lock in your mortgage rate based on today's rates -- especially since they're so competitive. But if your closing is more than 30 days away, you may want to choose a floating rate lock instead for what will usually be a higher fee, but one that could save you money in the long run. A floating rate lock lets you secure a lower rate on your mortgage if rates fall prior to your closing, and while today's rates are still quite low, we don't know if rates will go up or down over the next few months. As such, it pays to:

• LOCK if closing in 7 days
• LOCK if closing in 15 days
• LOCK if closing in 30 days
• FLOAT if closing in 45 days
• FLOAT if closing in 60 days

To find out what rates are available to you, compare rates from at least three of the best mortgage lenders before locking in.